Defence Tech x Spatial Computing

At FOV Ventures, we back founders building for the next era of computing. Our thesis spans areas such as spatial computing, AR/VR, 3D engines, robotics, computer vision, and embodied AI.

While most of our portfolio companies are building for civilian markets, we increasingly see the technologies at the heart of our thesis overlapping with defence - a sector undergoing rapid technological transformation and increasing interest from both founders and investors alike. 

It’s hard to escape the fact that Europe’s strategic awakening, a re-focusing on sovereign resiliency and NATO’s growing 5% of GDP budget consensus have catalysed a defence tech innovation. From immersive simulation to visual intelligence to autonomous robotics, spatial technologies are increasingly being applied in high-stakes environments.

In this post, we explore where the worlds of spatial computing and defence intersect — and why this presents a timely opportunity for startups and investors alike.

The Convergence of Civilian & Defence Innovation

Dual-use technology is nothing new.

The Internet itself, GPS, and even drones have all emerged from defence roots before commercialising at scale. Today, the flow is often reversed: frontier innovation is being born in commercial markets and pulled into defence. 

Three forces are driving this shift:

1. Procurement reform

   The U.S. Defence Innovation Unit has compressed timelines from 3-5 years to 12-18 months while contracting $3+ billion in commercial tech. And initiatives like the UK’s Defence Security Accelerator have streamlined procurement to allow startups and commercial tech companies to contract directly with the military, bypassing traditional, slow-moving defence contractors.
   

2. Geopolitical Urgency

   Ukraine demonstrated commercial drones and AI outperforming legacy systems, spurring 20% increases in European defence spending, and
   

3. Economic reality

   Lockheed's F-35's $400+ billion development cost over 20 years versus commercial AI breakthroughs requiring ~$100 million over two years.
   

4. Changing battlefield
   The Ukraine conflict has exposed a shift from traditional armored divisions to fast, unpredictable threats like commercial drones. Western forces urgently need to modernize, and agile, software-first startups like Helsing are proving vital in adapting quickly with innovative, deployable solutions.

One of the key reasons startups are able to enter defence today is that much of this innovation sits at the 'payload layer' (software) rather than requiring full platform development (hardware).

Startups don’t have to build the entire drone, vehicle, or weapons system - they can build specialised vertical modules - such as sensors, autonomy stacks, mapping engines, perception layers - that integrate into existing military platforms.

This allows for faster iteration, lower CapEx, and easier insertion into defence programs compared to replacing entire hardware platforms, which remain dominated by primes.

When Consumer Tech Meets the Battlefield

Few individuals exemplify the dual-use journey from civilian tech to defence impact like Palmer Luckey. He originally founded Oculus, the VR company acquired by Meta (then Facebook), helping to kick off the modern era of consumer virtual reality. After departing Oculus, Luckey went on to found Anduril, a defence technology company focused on autonomous systems and AI-powered surveillance.

Anduril’s edge comes from speed - delivering 70% of capability 10% of the time. Defence buyers prioritise rapid deployment over incremental gains, creating a time-based moat few primes like BAE can match.

In a full-circle moment, Meta and Anduril have now teamed up to develop the next generation of the IVAS (Integrated Visual Augmentation System) - a USD 22 billion U.S. military program that equips soldiers with AR-enabled headsets for enhanced situational awareness, target acquisition, and battlefield communication.

This collaboration illustrates not only the maturity of spatial computing, but its strategic convergence with defence. What began as a consumer VR device is now part of an advanced, AI-driven military interface.

Strategic Alignment: Where Spatial Computing Meets Defence

Our core thesis - centred around spatial computing - touches multiple critical areas in defence. Here’s how our investment themes connect to key areas of defence transformation:

1. Simulation & Training

VR/AR for Military Training

Mixed reality technology outperforms traditional simulators in a number of ways and enables training at scale by providing realistic, repeatable and low-cost training environments. European startups like Varjo and Vrgineers are providing capabilities such as high-fidelity pilot and combat training with commercial-grade headsets.

Game Engines & Digital Twin

Real-time engines like Unity and Unreal power immersive mission rehearsal and synthetic battlefield simulation. Improbable Defence is a standout here, enabling NATO-scale war gaming.

Defence companies such as Lockheed Martin are leveraging game engines like Epic’s Unreal Engine to power high-fidelity simulation and training environments. In essence, this 3D realtime engine acts as a military-grade sandbox, accelerating Lockheed’s ability to design, simulate, and validate systems — all while bridging virtual environments with real-world missions. 

2. Situational Awareness & Visualisation

Augmented Reality for Tactical Edge

From the U.S. Army’s aforementioned  IVAS (Integrated Visual Augmentation System)  to FOV portfolio Distance Technologies and Patria’s collaboration on in-vehicle mixed reality HUDs, AR is becoming key to real-time tactical decision-making. These systems overlay mission-critical data - such as navigation routes, target info, sensor feeds, or squad positions - directly into a soldier’s or vehicle operator’s field of view.

This not only improves situational awareness and reaction time in dynamic environments but also reduces cognitive load under stress. As AR hardware matures and AI integrates more seamlessly, key personnel will make faster, safer, and more informed decisions through spatially contextualised information.

3D Mapping & Geospatial Intelligence

Technologies like SLAM, LiDAR, and photogrammetry now enable rapid 3D reconstruction of environments from drone, satellite, or ground-based sensors. These tools generate accurate, high-resolution spatial models that are crucial for understanding complex or unfamiliar terrain. In urban combat scenarios, they support precise mission planning and line-of-sight analysis; in remote or disaster-stricken areas, they offer up-to-date situational awareness where maps may be outdated or unavailable. Defense agencies are increasingly relying on these real-time 3D models to support ISR (intelligence, surveillance, reconnaissance), infrastructure assessment, and autonomous vehicle navigation. As edge processing improves, more of this mapping can be done live, on-device, and in denied environments — making it an essential capability in modern operations.

Austria-based Blackshark.ai is maybe best known for powering the 3D world in Microsoft Flight Simulator using AI to reconstruct photorealistic environments from satellite imagery.  But the same tech is used by the U.S. Air Force Research Lab (AFRL) to create real-time geospatial digital twins for mission planning, ISR, and UAV navigation. It’s a prime example of gaming-grade spatial tech with direct defence applications.

3. Autonomy & Robotics

Physical AI and Robotics

UGVs and UAVs are increasingly used for surveillance, logistics, mine clearing, and other high-risk or repetitive defence tasks. Robots in defence settings require cutting edge computer vision and spatial awareness and rely on robust autonomy and ruggedised design to operate effectively in harsh and GPS-denied environments. 

ARX Robotics, a German startup, is emerging as a leader in this space with its modular, AI-powered unmanned ground vehicles designed for rapid deployment and interoperability with existing military infrastructure. Recently backed by the NATO Innovation Fund, ARX exemplifies how Europe is ramping up its investment in dual-use robotics to enhance defence readiness and reduce human exposure in dangerous operational zones.

4. Computer Vision for ISR & Targeting

Computer vision — particularly spatial AI — is becoming a foundational layer in ISR (Intelligence, Surveillance, and Reconnaissance) and targeting systems.

Object Detection & Tracking

Autonomous vehicles, drones, and fixed surveillance systems increasingly rely on AI-powered object detection and tracking to classify vehicles, people, threats, and terrain features in real time. Many of these models are adapted or fine-tuned versions of commercial vision stacks originally developed for automotive, industrial, or security applications — a clear example of dual-use convergence.

Germany’s Helsing, builds real-time software for battlefield awareness, enabling platforms like fighter jets and drones to process sensor data onboard for immediate threat detection and classification. It’s one of Europe’s highest-profile defence AI startups and a key player in NATO-aligned ISR modernisation, partnering with industry and governments to connect existing and new hardware platforms with advanced AI.

Sensor Fusion

No single sensor offers complete reliability in battlefield conditions. That’s why sensor fusion — the integration of data from RGB cameras, thermal/infrared sensors, LiDAR, radar, and acoustic sources — is critical for enhancing accuracy and robustness in vision systems.

This layered sensing approach allows systems to operate in degraded conditions (e.g., night, fog, electronic warfare) and makes target detection and situational awareness far more resilient.

As vision AI continues to evolve, the military’s appetite for autonomous ISR systems - ones that can detect, classify, and act on sensor input with minimal human intervention - will only grow. Startups building robust, real-time computer vision solutions today are increasingly finding defence as a valuable customer segment. 

The rise of smaller, more frequent threats has led to increased sensor data and a battlefield that is more transparent and data-rich. This demands faster decision-making. To keep pace, information must be presented clearly and quickly — without overwhelming operators. This creates strong demand for situational awareness solutions like those from Distance Technologies.

Implications for Founders & Investors

As spatial technologies mature and defence demand intensifies, the opportunities — and complexities — for founders and investors at this intersection are growing.

Defence as a Beachhead

Even if a startup isn’t “defence-first,” the growing demand for spatial technologies in military contexts presents an additional go-to-market opportunity. Governments are often willing to fund cutting-edge, unproven technology with strategic upside. Which can help to de-risk a startup's early growth.

Challenges & Nuance

But it’s not without its challenges. Founders often have to navigate lengthy procurement cycles, export controls, and ethical considerations. Not all dual-use paths are aligned with every team’s mission or values. To call out procurement in particular, several people told us that this is usually the key thing that their startups need to navigate correctly in order to be successful. Although overall budgets are growing, accessing them is both extremely difficult and extremely important!

For investors, the sector is shifting. Defence is no longer seen as off-limits or niche — it’s increasingly viewed as a strategic and legitimate category, especially in the wake of geopolitical tension. As these worlds converge, the most compelling opportunities will come from teams who can bridge technical excellence with mission-driven execution, and who are fluent in both the startup and government languages.

Defence applications are not just about weapons - they’re about readiness, resilience, autonomy, and safety. Spatial computing can play a foundational role across all of these.

At FOV Ventures, we remain focused on investments that shape the future responsibly and we’re excited to collaborate with and learn more from both founders and other investors spending time at this pivotal intersection.

Some early stage startups in this space that we didn’t mention above include:

Vegvisir - It's VR for tank navigation.
TeleArmy - Remote vehicle controlling
Viseir - detection and visualisation for applications like de-mining
Array Labs - constellation flying together in a formation and creating 3D maps
Firesight Vision - drone to 3D mesh mapping of the battlefield
Stanhope - AI models for the realworld
SE3 Labs - spatial intelligence for the world around us
Roboneers - unmanned systems for combat effectiveness of future forces
Milrem Tech - enhancing combat effectiveness through robotics

If you’re building or investing at this frontier, we’d love to hear from you.

Note: A big thanks to Tisho Jenkut (Presto Ventures) and Rich Warwick (Distance Technologies) for providing feedback and additional thoughts for this post.